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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

510204

Report Date :

21.05.2018

 



IDENTIFICATION DETAILS

 

Name :

DEEPAK FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED

 

 

Registered Office :

Opposite Golf Course, Shastri Nagar, Yerawada, Pune – 411006, Maharashtra

Tel. No.:

91-20-66458114/66458000

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

31.05.1979

 

 

Com. Reg. No.:

11-021360

 

 

Capital Investment / Paid-up Capital :

INR 882.049 Million

 

 

CIN No.:

[Company Identification No.]

L24121MH1979PLC021360

 

 

IEC No.:

[Import-Export Code No.]

0388031573

 

 

GSTN :

[Goods & Service Tax Registration No.]

27AAACD1388D1ZW

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACD1388D 

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Subject produces and sells industrial chemicals and fertilizers. It operates through Chemicals, Bulk Fertilisers, Realty, and Others. The Chemicals segment offers ammonia, methanol, dilute nitric acid, concentrated nitric acid, liquid carbon di-oxide, technical ammonium nitrate, Iso propyl alcohol, propane, and bulk and specialty chemicals. The Bulk Fertilisers segment provides nitro phosphate, muriate of potash, di ammonium phosphate, ammonium sulphate, mixtures, SSP, sulphur, micronutrients, SSF, bio fertilizers, fruits, vegetables, and pesticides. The Realty segment is involved in the real estate business. The others segment generates power through windmills.  [Registered Activity]

 

 

No. of Employees :

1630 (Approximately)

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A+

 

Credit Rating

Explanation

Rating Comments

A+

Low Risk

Business dealings permissible with low risk of default

 

Maximum Credit Limit :

USD 49000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exists 

 

 

Comments :

Subject was incorporated in the year 1979. It manufactures methanol, nitric acid, ISO propyl alcohol, carbon dioxide and hydrogen.


It also offers specialty retailing services under brand name Ishanya.


As per the financials of 2017, the company has reported dip in its revenue by 21.31% as compared to the previous year but has managed to maintain a decent profit margin of 4.43%.


Ratings continue to derive strength from the company’s long track record of operations backed by experienced promoters and management team and a diverse and well-established distribution network including warehouses and dealerships networks.


Rating also takes into account of company’s above average financial profile supported by adequate net worth base along with sound debt protection indicators and favourable liquidity position.


Further, as per the quarterly financials of December 2017, the company achieved revenue of INR 9367.000 million along with a profit of INR 261.900 million.

However, rating strengths is partially offset by the volatility in the prices of raw materials namely natural gas, propylene, ammonia and phosphorous business.

Payment seems to be regular and as per commitment.


In view of aforesaid, the company can be considered for business dealings at usual trade terms and conditions.


Note 1: The Mumbai Bench of the National Company Law Tribunal (NCLT), vide its Order dated 30th March, 2017 (a certified copy has been received on 13th April, 2017) has approved the Scheme of Arrangement amongst the Company, SCM Fertichem Limited (SCM Fertichem) and Smartchem Technologies Limited (Smartchem) and their respective shareholders and creditors.


Note 2: The National Company Law Tribunal, vide its Order dated 22nd June, 2017, has approved the “Scheme of Amalgamation” providing for amalgamation of SCM Soilfert Limited, a Wholly Owned Subsidiary of the Company, with the Company. The Appointed Date for the said Scheme is 01st April, 2015. A certified copy of the Scheme is yet to be received.

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2018.

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 21.05.2018

 

 

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

 

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

 

INFORMATION DENIED

 

MANAGEMENT NON CO-OPERATIVE (91-20-66458000/26688117)

 

91-20-41518888 – number is not working

 

LOCATIONS

 

Registered Office :

Opposite Golf Course, Shastri Nagar, Yerawada, Pune – 411006, Maharashtra, India

Tel. No.:

91-20-66458000/ 26688117/ 66458114

Fax No.:

91-20-26683723

E-Mail :

investorgrievance@dfpcl.com

mandar.velankar@dfpcl.com

k.subharaman@dfpcl.com

Website :

www.dfpcl.com

 

 

Corporate Office :

Sai-Hera, Survey No. 93, Mundhwa, Pune – 411036, Maharashtra, India

Tel. No.:

91-20-66458000

Fax No.:

91-20-26683727

 

 

Factory :

Plot No. K-1, K-7 and K-8, MIDC Industrial Area, Taloja, A. V., District Raigad – 410208, Maharashtra, India

Tel. No.:

91-22-67684000/ 61495001

Fax No.:

91-22-27412413/ 67495151

E-Mail :

yogesh.mittal@dfpcl.com

 

 

Marketing / Project Office :

Plot No. 32, Sector 16, Opposite Modern College, Vashi, Navi Mumbai - 400703, Maharashtra, India

 

 

Branch Office :

Located At

 

·         Delhi, India

 

 

DIRECTORS

 

AS ON 31.03.2018

 

Name :

Mr. Sailesh Chimanlal Mehta

Designation :

Managing Director

Address :

93, Koregaon Park South Main Road, Pune-411001, Maharashtra, India

Date of Appointment :

01.08.2008

DIN No.:

00128204

 

 

Name :

Mr. Rajendra Ambalal Shah

Designation :

Director

Address :

Panorama, 2nd Floor 203, Walkeshwar Road, Mumbai-400006, Maharashtra, India

Date of Appointment :

11.02.2015

DIN No.:

00009851

 

 

Name :

Mr. Parul Sailesh Mehta

Designation :

Director

Address :

93, Koregaon Park South Main Road, Pune-411001, Maharashtra, India

Date of Appointment :

20.10.2005

DIN No.:

00196410

 

 

Name :

Mr. Sewak Ram Wadhwa

Designation :

Director

Address :

A – 261, New Friends Colony, New Delhi-110065, India

Date of Appointment :

17.07.2006

DIN No.:

00228201

 

Name :

Mr. Urmilkumar Purushottamdas Jhaveri

Designation :

Director

Address :

230,Manekbaug Society, Ambawadi, Ahmedabad-380015, Gujarat, India

Date of Appointment :

21.10.2004

DIN No.:

00273898

 

Name :

Mr. Anil Sachdev

Designation :

Director

Address :

1002-B, The Aralias DLF Golf Course DLF Phase V, Gurgaon-122009, Haryana, India

Date of Appointment :

23.10.2008

DIN No.:

00301007

 

Name :

Mr. Partha Sarathi Bhattacharyya

Designation :

Director

Address :

Na 15,Sanjeeva Town, Konchpukur New Town, Rajarhat North 24 Parganas Kolkata-700102, West Bengal, India

Date of Appointment :

31.10.2012

DIN No.:

00329479

 

Name :

Mr. Pranay Dhansukhlal Vakil

Designation :

Director

Address :

Flat No. 702, 7th Floor, Shanudeep Building 10a, Altamount Road, Mumbai-400026, Maharashtra, India

Date of Appointment :

25.05.2010

DIN No.:

00433379

 

Name :

Mr. Madhumilan Parshuram Shinde

Designation :

Director

Address :

B-703, Sector No. 3, Plot No. 19 Koparkhairne, Mumbai-400709, Maharashtra, India

Date of Appointment :

10.02.2017

DIN No.:

06533004

 

 

Name :

Berjis Minoo Desai

Designation :

Director

Address :

Yezerina-II Road No 5 740/741, Dadar Parsi Colony, Dadar, Mumbai -400014, Maharashtra, India

Date of Appointment :

07.07.2017

DIN No.:

00153675

 

 

Name :

Ashok Kumar Purwaha

Designation :

Director

Address :

B-5, Ranjit Singh Block, Asian Games Village, New Delhi -110049, India

Date of Appointment :

07.07.2017

DIN No.:

00165092

 

 

Name :

Mahesh Ramchand Chhabria

Designation :

Director

Address :

11 Golden Beach, Ruia Park, Juhu, Mumbai - 400049, Maharashtra, India

Date of Appointment :

07.07.2017

DIN No.:

00166049

 

 

Name :

Anil Chandanmal Singhvi

Designation :

Director

Address :

131A,Twin Towers, Veer Savarkar Marg, Prabhadevi, Mumbai -400025, Maharashtra, India

Date of Appointment :

07.07.2017

DIN No.:

00239589

 

 

KEY EXECUTIVES

 

Name :

Mr. Subharaman Krishnan

Designation :

Company Secretary

Address :

E 202, Magnolia Enclave Nahar Amrit Shakti, Chandivali, Andheri (East), Mumbai-400072, Maharashtra, India

Date of Appointment :

12.08.2016

PAN No.:

AJOPK4046P

 

 

Name :

Mr. Amitabh Bhargava

Designation :

Chief Finance Officer

Address :

1203 / 1204, Akruti Nova A Wing, N. S. P Opposite Teli Gali, Sai Wadi, Andheri East, Mumbai -400068, Maharashtra, India

Date of Appointment :

02/11/2017

PAN No.:

AACPB9086F

 

 

MANAGEMENT TEAM

 

Guy Goves

President - Crop Nutrition Business

 

Pandurang Landge

President – Projects

 

Naresh Kumar Pinisetti

President - Human Resources

 

Paresh Trivedi

President - Chemicals & Business Development

 

Shyam Narayan Sharma

President – TAN

 

Vipin Agarwal

President - Finance & CFO

 

D. S. Ravindra Raju

President - Manufacturing

 

 

SHAREHOLDING PATTERN

 

AS ON 31.03.2018

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Promoter & Promoter Group

45049377

51.07

(B) Public

43155566

48.93

Grand Total

88204943

100.00

 

 

Statement showing shareholding pattern of the Promoter and Promoter Group

 

Category of Shareholder

No. of Shares

Percentage of Holding

A1) Indian

 

0.00

Individuals/Hindu undivided Family

767005

0.87

CHIMANLAL KHIMCHAND MEHTA

764273

0.87

SAILESH CHIMANLAL MEHTA

1506

0.00

PARUL SAILESH MEHTA

1226

0.00

Any Other (specify)

44282372

50.20

NOVA SYNTHETIC LIMITED

42594071

48.29

SOFOTEL INFRA PRIVATE LIMITED

1688301

1.91

Sub Total A1

45049377

51.07

A2) Foreign

 

0.00

A=A1+A2

45049377

51.07

 

 

BUSINESS DETAILS

 

Line of Business :

Subject produces and sells industrial chemicals and fertilizers. It operates through Chemicals, Bulk Fertilisers, Realty, and Others. The Chemicals segment offers ammonia, methanol, dilute nitric acid, concentrated nitric acid, liquid carbon di-oxide, technical ammonium nitrate, Iso propyl alcohol, propane, and bulk and specialty chemicals. The Bulk Fertilisers segment provides nitro phosphate, muriate of potash, di ammonium phosphate, ammonium sulphate, mixtures, SSP, sulphur, micronutrients, SSF, bio fertilizers, fruits, vegetables, and pesticides. The Realty segment is involved in the real estate business. The others segment generates power through windmills.  [Registered Activity]

 

 

Products / Services :

Name and Description of main products / services

NIC Code

Nitrophosphate (Fertilisers)

20122

Complexes (Fertilisers)

20122

Technical Ammonium Nitrate

20123

 

 

Brand Names :

Ishanya

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS – NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged 

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Experience :

--

Maximum Limit Dealt :

--

Remark :

--

 

 

Customers :

Reference :

Not Divulged 

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Experience :

--

Maximum Limit Dealt :

--

Remark :

--

 

 

No. of Employees :

1630 (Approximately)

 

 

Bankers :
  • IDBI Bank Limited
  • Bank of Baroda
  • DBS Bank Limited
  • ICICI Bank Limited
  • State Bank of India
  • Yes Bank Limited
  • Kotak Mahindra Bank Limited

 

 

Facilities :

SECURED LOANS

31.03.2017

INR In Million

31.03.2016

INR In Million

LONG TERM BORROWINGS

 

 

Bank of Baroda, London

0.000

659.631

HSBC Bank (Mauritius) Ltd

0.000

275.468

Debentures

 

 

2500, 9.71% Redeemable Privately Placed

NCDs of ` 10 Lacs each

0.000

2498.075

State Bank of India

0.000

1000.000

Kotak Mahindra Bank

0.000

636.400

Export Import Bank of India

0.000

363.600

Less: Current maturities of long-term debt

0.000

740.804

SHORT TERM BORROWINGS

 

 

From banks

 

 

Buyer’s credit

2712.589

3027.618

Short term loan from bank

0.000

1000.000

Cash credit facilities

39.551

98.493

Total

2752.140

8818.481

 

Auditors :

 

Name :

B. K. Khare and Company

Chartered Accountants

Address :

706/708, Sharda Chambers New Marine Lines, Mumbai-400020, Maharashtra, India

Tel. No.:

91-22-62439500

Fax No.:

91-22-22003476

E-Mail :

info@bkkhareco.com

 

 

Solicitors:

Crawford Bayley and Co.

 

Agarwal Law Associates

 

Desai and Diwanji

 

 

Secretarial Auditor:

SVD and Associates

 

 

Cost Auditor:

R Doshi and Company

 

 

Internal Auditor:

Ernst and Young

V. P. Mehta and Co.

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Associates:
  • Ishanya Brand Services Limited
  • Ishanya Realty Corporation Limited
  • Mumbai Modern Terminal Complex Private Limited
  • Desai Fruits and Vegetables Private Limited

 

 

Subsidiaries:
  • Smartchem Technologies Limited (STL)
  • Platinum Blasting Services Pty Limited [PBS] (Subsidiary of STL)
  • Australian Mining Explosives Pty Limited Subsidiary of PBS)
  • SCM Soilfert Limited
  • RungePincockMinarco India Private Limited
  • Yerrowda Investments Limited
  • Deepak Mining Services Private Limited
  • Deepak Nitrochem Pty Limited
  • SCM Fertichem Limited

 

 

Entities over which key managerial personnel are able to exercise significant influence:
  • Blue Shell Investments Private Limited
  • Nova Synthetic Limited
  • The Lakaki Works Private Limited
  • Superpose Credits And Capital Private Limited
  • Storewell Credits And Capital Private Limited
  • High Tide Investments Private Limited
  • Deepak Asset Reconstruction Private Limited
  • Mahadhan Investment and Finance Private Limited
  • Ishanya Foundation
  • Deepak Foundation
  • Mahadhan Farm Technologies Private Limited
  • Robust Marketing Services Private Limited
  • Performance Chemiserve Private Limited (w.e.f. 30/03/2017)

 

 

Enterprises over which relatives are able to exercise significant influence:
  • Deepak Nitrite Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2017

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

125000000

Equity Shares

INR 10/- each

INR 1250.000 Million

1000000

Cumulative Redeemable Preference Shares

INR 100/- each

INR 100.000 Million

 

 

 

 

 

Total

 

INR 1350.000 Million

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

88204943

Equity Shares

INR 10/- each

INR 882.049 Million

 

 

 

 

 

Reconciliation of the number of shares

 

Equity Shares

Number of Shares

Amount

Balance as at the beginning of the year

88,204,943

882.049

Add: Issued during the year

--

--

Closing Balance

88,204,943

882.049

 

Terms and rights attached to equity shares

 

The Company has only one class of issued Equity Shares having at par value of INR 10 per share. Each holder of Equity Shares is entitled to one vote per Share.

 

The Company declares and pays dividend in Indian Rupees except in the case of overseas Shareholders where dividend is paid in respective foreign currencies considering foreign exchange rate applied at the date of remittance. The dividend proposed by the Board of Directors is subject to the approval of Shareholders in the ensuring Annual General Meeting.

 

In the event of liquidation of the Company the holders of Equity Share will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in proportion to their shareholding.

 

(ii) Details of shareholders holding more than 5% shares in the company

 

Name of Shareholder

Number of Shares

(INR IN Million)

% holding

Mr. S C Mehta

0.02

0.00%

Nova Synthetic Limited

425.94

48.29%

Fidelity Puriton Trust-Fidelity Low Priced Stock Fund

72.00

8.16%

 

 

FINANCIAL DATA

[all figures are INR Million]

 

 

ABRIDGED BALANCE SHEET (STANDALONE)

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

882.049

882.049

882.049

(b) Reserves & Surplus

16415.331

14834.680

14366.573

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

17297.380

15716.729

15248.622

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

4692.370

3385.417

(b) Deferred tax liabilities (Net)

164.531

1203.003

1244.943

(c) Other long term liabilities

112.471

356.017

8.199

(d) long-term provisions

0.000

0.000

260.964

Total Non-current Liabilities (3)

277.002

6251.390

4899.523

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

9199.949

14043.500

7851.099

(b) Trade payables

2131.783

4675.171

2306.427

(c) Other current liabilities

25.752

287.508

3803.216

(d) Short-term provisions

3726.264

3473.404

528.251

Liabilities pertaining to Discontinuing operations

14400.766

0.000

0.000

Total Current Liabilities (4)

29484.514

22479.583

14488.993

 

 

 

 

TOTAL

47058.896

44447.702

34637.138

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

7329.075

12580.238

13445.391

(ii) Intangible Assets

9.158

46.920

60.704

(iii) Capital work-in-progress

921.224

3950.468

1405.656

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

1055.682

1105.512

1081.848

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.000

0.000

603.103

(e) Other Non-current assets

371.382

1157.526

82.033

Total Non-Current Assets

9686.521

18840.664

16678.735

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

1180.940

271.777

1932.490

(b) Inventories

1509.851

5980.606

4029.594

(c) Trade receivables

3474.777

15343.518

9352.527

(d) Cash and cash equivalents

793.433

2085.436

383.617

(e) Short-term loans and advances

352.765

352.662

2097.115

(f) Other current assets

1716.684

1573.039

163.060

Assets pertaining to Discontinuing Operations

28343.925

0.000

0.000

Total Current Assets

37372.375

25607.038

17958.403

 

 

 

 

TOTAL

47058.896

44447.702

34637.138

 

 

PROFIT & LOSS ACCOUNT (STANDALONE)

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

21270.779

27032.044

37117.663

 

Other Income

179.480

43.857

382.804

 

TOTAL

21450.259

27075.901

37500.467

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

5166.644

9374.811

13946.444

 

Purchases of Stock-in-Trade

9937.294

11277.333

15958.013

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

427.010

(1080.200)

(725.659)

 

Excise duty

1003.081

1351.958

--

 

Employees benefits expense

1185.335

556.066

1426.813

 

Other expenses

1047.069

3298.168

3534.987

 

Exceptional Items

--

--

3.485

 

TOTAL

18766.433

24778.136

34144.083

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

2683.826

2297.765

3356.384

 

 

 

 

 

Less

FINANCIAL EXPENSES

872.341

335.188

1101.071

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

1811.485

1962.577

2255.313

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

578.986

677.588

1173.078

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

1232.499

1284.989

1082.235

 

 

 

 

 

Less

TAX

291.015

457.821

298.720

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

941.484

827.168

783.515

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

Export of goods (on FOB basis)

1168.862

971.759

879.965

 

Other Income

112.459

47.031

78.949

 

TOTAL EARNINGS

1281.321

1018.790

958.914

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

NA

4242.930

4062.907

 

Components and spare parts

NA

46.201

106.199

 

Capital goods

NA

1103.184

47.456

 

Stock-in-trade

NA

16141.817

11697.266

 

TOTAL IMPORTS

NA

21534.132

15913.828

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

18.16

13.59

8.88

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

2499.182

740.804

2604.167

Cash generated from operations

9845.876

(712.598)

(515.654)

Net cash inflow from operating activities

9340.506

(992.785)

(729.630)

 

 

QUARTERLY RESULTS

 

Particulars

 

30.06.2017

(Unaudited)

30.09.2017

(Unaudited)

31.12.2017

(Unaudited)

 

1st Quarter

2nd Quarter

3rd Quarter

Net sales

6376.000

5900.000

9395.000

Total Expenditure

5976.800

5452.00

8769.800

PBIDT (Excluding Other Income)

399.200

448.000

625.200

Other income

51.200

67.200

48.900

Operating Profit

450.400

515.200

674.100

Interest

125.200

159.100

166.200

Exceptional Items

NA

NA

NA

PBDT

325.200

356.100

507.900

Depreciation

148.200

151.500

136.200

Profit Before Tax

177.000

204.600

371.700

Tax

50.600

61.200

109.800

Provisions and contingencies

NA

NA

NA

Profit after tax

126.400

143.400

261.900

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

126.400

143.400

261.900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

59.63

207.18

91.97

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

6.12

1.76

3.97

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

51.52

82.63

28.15

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

1.78

0.38

0.83

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.32

0.14

0.23

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.68

0.63

0.59

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.68

1.24

0.91

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

1.70

1.43

0.95

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.48

1.05

0.98

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

3.08

6.86

3.05

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

4.43

3.06

2.11

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

2.00

1.86

2.26

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

5.44

5.26

5.14

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

1.27

1.14

1.24

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

1.22

0.87

0.96

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.37

0.35

0.44

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

13.26

22.08

15.69

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

1.27

1.14

1.24

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 10/-

Market Value

INR 318.05/-

 

 

FINANCIAL ANALYSIS

[all figures are INR Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

882.049

882.049

882.049

Reserves & Surplus

14366.573

14834.680

16415.331

Share Application money pending allotment

0.000

0.000

0.000

Net worth

15248.622

15716.729

17297.380

 

 

 

 

Long-Term Borrowings

3385.417

4692.370

0.000

Short Term Borrowings

7851.099

14043.500

9199.949

Current Maturities of Long term debt

2604.167

740.804

2499.182

Total borrowings

13840.683

19476.674

11699.131

Debt/Equity ratio

0.908

1.239

0.676

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

37117.663

27032.044

21270.779

 

 

(27.172)

(21.313)

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

37117.663

27032.044

21270.779

Profit

783.515

827.168

941.484

 

2.11%

3.06%

4.43%

 

 

 

ABRIDGED BALANCE SHEET (CONSOLIDATED)

 

SOURCES OF FUNDS

 

 

31.03.2017

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

 

882.049

(b) Reserves & Surplus

 

 

16225.015

(c) Money received against share warrants

 

 

0.000

 

 

 

 

(2) Share Application money pending allotment

 

 

0.000

Non-Controlling Interest

 

 

(24.591)

Total Shareholders’ Funds (1) + (2)

 

 

17082.473

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

 

4716.018

(b) Deferred tax liabilities (Net)

 

 

1189.479

(c) Other long term liabilities

 

 

352.638

(d) long-term provisions

 

 

0.000

Total Non-current Liabilities (3)

 

 

6258.135

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

 

10387.580

(b) Trade payables

 

 

4151.810

(c) Other current liabilities

 

 

8918.207

(d) Short-term provisions

 

 

371.958

Total Current Liabilities (4)

 

 

23829.555

 

 

 

 

TOTAL

 

 

47170.163

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

 

19914.258

(ii) Intangible Assets

 

 

174.593

(iii) Capital work-in-progress

 

 

3852.724

(iv) Intangible assets under development

 

 

0.000

Goodwill

 

 

145.515

(b) Non-current Investments

 

 

336.771

(c) Deferred tax assets (net)

 

 

0.000

(d)  Long-term Loan and Advances

 

 

0.000

(e) Other Non-current assets

 

 

1448.855

Total Non-Current Assets

 

 

25872.716

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

 

1416.083

(b) Inventories

 

 

5045.321

(c) Trade receivables

 

 

11833.721

(d) Cash and cash equivalents

 

 

976.410

(e) Short-term loans and advances

 

 

42.593

(f) Other current assets

 

 

1983.319

Total Current Assets

 

 

21297.447

 

 

 

 

TOTAL

 

 

47170.163

 

SOURCES OF FUNDS

 

 

31.03.2016

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

 

882.049

(b) Reserves & Surplus

 

 

14459.310

(c) Money received against share warrants

 

 

0.000

(2) Share Application money pending allotment

 

 

0.000

Minority Interest

 

 

77.431

Total Shareholders’ Funds (1) + (2)

 

 

15418.790

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

 

4890.665

(b) Deferred tax liabilities (Net)

 

 

1252.460

(c) Other long term liabilities

 

 

11.495

(d) long-term provisions

 

 

310.928

Total Non-current Liabilities (3)

 

 

6465.548

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

 

14094.701

(b) Trade payables

 

 

4779.009

(c) Other current liabilities

 

 

2542.404

(d) Short-term provisions

 

 

410.588

Total Current Liabilities (4)

 

 

21826.702

 

 

 

 

TOTAL

 

 

43711.040

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

 

13266.795

(ii) Intangible Assets

 

 

276.670

(iii) Capital work-in-progress

 

 

3961.951

(iv) Intangible assets under development

 

 

0.000

Goodwill

 

 

0.000

(b) Non-current Investments

 

 

8.277

(c) Deferred tax assets (net)

 

 

0.000

(d)  Long-term Loan and Advances

 

 

1048.603

(e) Other Non-current assets

 

 

121.156

Total Non-Current Assets

 

 

18683.452

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

 

352.778

(b) Inventories

 

 

6069.393

(c) Trade receivables

 

 

14976.618

(d) Cash and cash equivalents

 

 

2339.449

(e) Short-term loans and advances

 

 

1252.998

(f) Other current assets

 

 

36.352

Total Current Assets

 

 

25027.588

 

 

 

 

TOTAL

 

 

43711.040

 

 

 

 

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

 

 

PARTICULARS

 

 

31.03.2017

 

SALES

 

 

 

 

Income

 

 

43781.272

 

Other Income

 

 

158.645

 

TOTAL

 

 

43939.917

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

 

 

14740.080

 

Purchases of Stock-in-Trade

 

 

13501.917

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

 

 

1189.917

 

Excise duty

 

 

2280.081

 

Employees benefits expense

 

 

2101.657

 

Other expenses

 

 

5233.631

 

TOTAL

 

 

39047.283

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

 

4892.634

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

 

1214.739

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

 

3677.895

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

 

 

1364.414

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

 

 

2313.481

 

 

 

 

 

Less

TAX

 

 

533.287

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

 

 

1780.194

 

 

 

 

 

SHARE OF (LOSS) OF ASSOCIATE

 

 

(23.106)

 

 

 

 

 

 

NET PROFIT AFTER TAX, NON-CONTROLLING INTEREST AND SHARE IN (LOSS) OF ASSOCIATES

 

 

1757.088

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

Items that may be reclassified to profit or loss

 

 

 

 

Net changes in fair value of investment other than equity shares carried at fair

value through OCI

 

 

5.378

 

Income tax relating to these items

 

 

(1.861)

 

Net changes in fair value of cash flow hedges

 

 

0.000

 

Income tax relating to these items

 

 

0.000

 

 

 

 

3.517

 

Items that will not be reclassified to profit or loss

 

 

(37.325)

 

Remeasurement of defined employee benefit plans

 

 

12.917

 

Income tax relating to these items

 

 

(24.408)

 

 

 

 

 

 

Other comprehensive income for the year, net of tax

 

 

(20.893)

 

 

 

 

 

 

Total comprehensive income for the period (including non-controlling interest)

 

 

1736.195

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

 

19.64

 

 

PARTICULARS

 

 

31.03.2016

 

SALES

 

 

 

 

Income

 

 

43526.952

 

Other Income

 

 

696.284

 

TOTAL

 

 

44223.236

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

 

 

15484.049

 

Purchases of Stock-in-Trade

 

 

19780.886

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

 

 

(1744.652)

 

Employees benefits expense

 

 

1910.595

 

Other expenses

 

 

4510.571

 

TOTAL

 

 

39941.449

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

 

4281.787

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

 

1275.417

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

 

3006.370

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

 

 

1258.074

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

 

 

1748.296

 

 

 

 

 

Less

TAX

 

 

601.584

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

 

 

1146.712

 

 

 

 

 

Minority interest

 

 

6.490

 

 

 

 

 

 

PROFIT FOR THE PERIOD

 

 

1153.202

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

 

13.07

 

 

LEGAL CASES

 

 

http://54.234.234.43/ferretops/mirascreenshots/5afe882d934a534c820000b55afe8870934a530fc400379c.jpg

 

http://54.234.234.43/ferretops/mirascreenshots/5afe882d934a534c820000b55afe8870934a530fc400379d.jpg

 

http://54.234.234.43/ferretops/mirascreenshots/5afe882d934a534c820000b55afe8871934a530fc400379f.jpg

http://54.234.234.43/ferretops/mirascreenshots/5afe882d934a534c820000b55afe8871934a530fc40037a0.jpg

 

http://54.234.234.43/ferretops/mirascreenshots/5afe882d934a534c820000b55afe8872934a530fc40037a5.jpg

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

Litigations that the firm/promoter involved in

Yes

32

Market information

--

33

Payments terms

No

34

Negative Reporting by Auditors in the Annual Report

No

 

THE COMPANY AND NATURE OF ITS OPERATIONS:

 

Subejct having corporate office in Pune, Maharashtra, India carries on business in fertilisers, agri services, bulk chemicals, mining, chemical and value added real estate. The Company is a public limited company and is listed on the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited.

 

STATE OF AFFAIRS OF THE COMPANY

 

The Company has achieved the top line of INR 42572.500 Million (including INR 17262.100 Million from trading operations) during the year as against previous year’s level of INR 44685.200 Million (including INR 19576.300 Million from trading operations). Profit before Tax (PBT) for the year was INR 2232.900 Million as against INR 1675.100 Million in the previous year. Net Profit for the current year was recorded at INR 1601.500 Million as against INR 1198.300 Million in the previous year. A detailed analysis of the performance is available in the Management Discussion and Analysis (MDA), which forms part of this Report, inter-alia, deals adequately with the operations and also current and future outlook of the Company.

 

SCHEME OF ARRANGEMENT WITH SCM FERTICHEM LIMITED AND SMARTCHEM TECHNOLOGIES LIMITED (BOTH WHOLLY OWNED SUBSIDIARIES OF THE COMPANY)

 

Further to an update provided in the Directors’ Report for the previous year, the Mumbai Bench of the National Company Law Tribunal (NCLT), vide its Order dated 30th March, 2017 (a certified copy has been received on 13th April, 2017) has approved the Scheme of Arrangement amongst the Company, SCM Fertichem Limited (SCM Fertichem) and Smartchem Technologies Limited (Smartchem) and their respective shareholders and creditors involving:

 

• The slump exchange of (a) the Technical Ammonium Nitrate (“TAN”) undertaking of the Company together with its business and operations including its manufacturing and related facilities located at (i) Taloja and Pune, Maharashtra

 

(ii) Jawaharlal Nehru Port, Maharashtra and

(iii) Paradeep and its marketing and corporate office(s) (“TAN Undertaking”), and (b) the Fertiliser undertaking of the Company together with its business and operations including its manufacturing and related facilities located at (i) Taloja and Pune, Maharashtra (ii) Jawaharlal Nehru Port, Maharashtra and (iii) Panipat, Haryana and its marketing and corporate office(s) (“Fertiliser Undertaking”) (and collectively, (a) and (b) are hereinafter referred to as the “Transferred Undertakings”) of the Company to SCM Fertichem, on a going concern basis (“Slump Exchange”); and

 

• Thereafter, the subsequent demerger of the Transferred Undertakings and vesting of the same from SCM Fertichem in Smartchem, on a going concern basis, in accordance with Section 2(19AA) of the Income Tax Act, 1961 (“Demerger”) with effect from the Appointed Date, 01st January, 2015.

 

A certified copy of the Order passed by the NCLT was filed with the Registrar of Companies, Pune, Maharashtra on 01st May, 2017. Thus the Scheme of Arrangement has become effective with effect from 01st May, 2017 in terms of the provision of the said Scheme of Arrangement.

 

In terms of the requirements of IND AS 105, the Transferred Undertakings have been disclosed as ‘Discontinuing Operations’ while preparing the stand-alone financial statements for the year ended 31st March, 2017. The Company continues to control the Transferred Undertakings through its Wholly Owned Subsidiary and hence there has no impact on the consolidated financial statements for the year.

 

SCHEME OF AMALGAMATION WITH THE WHOLLY OWNED SUBSIDIARY

 

Further to an update provided in the Directors’ Report for the previous year, the National Company Law Tribunal, vide its Order dated 22nd June, 2017, has approved the “Scheme of Amalgamation” providing for amalgamation of SCM Soilfert Limited, a Wholly Owned Subsidiary of the Company, with the Company. The Appointed Date for the said Scheme is 01st April, 2015. A certified copy of the Scheme is yet to be received.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

ECONOMIC REVIEW

 

Global outlook has improved for Europe, Japan and USA based on a cyclical recovery in manufacturing and trade in the second half of FY16. In the Middle East, growth was slower due to lower growth in oil exports especially post- OPEC agreement to cut oil production. With buoyant financial markets and a long-awaited cyclical recovery, world growth is projected to rise from 3.1% in FY16 to 3.6% in FY18 as per the IMF. Economic activity is projected to pick up markedly in emerging markets and developing economies as the partial recovery in commodity prices will help improve macroeconomic strains for commodity exporters. Growth is projected to remain strong in China and many other commodity-importing countries like India. In advanced economies, the pickup is primarily driven by higher projected growth in the United States (US), assuming ease in fiscal policy stance and an uptick in confidence, especially after the November elections.

 

OUTLOOK AND OPPORTUNITIES

 

Coal India Limited and Singareni Collieries Company Limited targets to increase coal production and waste removal to grow by 8% in FY18 driven by end of destocking cycle and substitution of coal and pet coke imports - which in turn bodes well for the domestic demand of TAN in FY18. Limestone Segment driven by Cement demand – largely driven by Pradhan Mantri (Housing for All) drive is also set for modest growth of 6-7% with capacity addition and expansion planned in South and East India. Iron Ore Segment is likely to see exports grow with Government abolishing export duty on the exports of low grade iron ore (up to 58% Fe) and likely discussion to extend this for iron ore (up to 62% Fe). With safe and reliable delivery network system in place, the Company continues to focus on building additional melt facilities,  warehouse capacity and state-of-the-art compliance system to drive market leadership.

 

UNSECURED LOAN:

 

Particulars

31.03.2017

INR In Million

31.03.2016

INR In Million

SHORT TERM BORROWINGS

 

 

Commercial Borrowings

6447.809

9917.389

Total

6447.809

9917.389

 

STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2017

                                                                                                                                      

 (INR In Million)

Particulars

Quarter Ended

Nine Months Ended

 

31.12.2017

30.09.2017

31.12.2017

 

(Unaudited)

(Unaudited)

(Unaudited)

Income from operations

 

 

 

Gross Sales Sales/Income from Operations

9367.000

5715.300

20784.400

Other Operating Income

28.000

24.100

110.600

Other Income

48.900

67.200

167.300

Total Income from Operations

9443.900

5806.600

21062.300

 

 

 

 

Expenses

 

 

 

Cost of materials consumed

2373.500

1740.000

5629.100

 Purchase of traded goods

6447.200

2885.000

12608.000

Changes in inventories of finished goods,  work-in-progress and traded goods

(765.600)

164.400

(797.600)

Excise duty

0.000

0.000

269.400

Employee benefits expense

228.500

200.500

557.000

Financial costs

166.200

159.100

450.500

Depreciation and amortisation expense

136.200

137.400

402.200

Other expenses

486.200

315.500

1190.300

Total Expenses

9072.200

5601.900

20308.900

Profit / Loss from operating before executional items

371.700

204.700

753.400

Exceptional Items

0.000

0.000

0.000

Profit from ordinary activities before tax

371.700

204.700

753.400

Tax expense

109.800

61.200

221.500

Net Profit for the period

261.900

143.500

753.400

 

 

 

 

Other Comprehensive Income

 

 

 

Effect of measuring investment at fair value

(10.300)

(2.200)

(0.700)

Income tax relating to these items

3.500

0.800

0.200

Total Other Comprehensive Income, net of tax

(6.800)

(1.400)

(0.500)

Total Comprehensive Income

255.100

142.100

531.400

Paid - up Equity Share Capital

(INR 10/- per share)

882.000

882.000

882.000

Earnings Per Share (EPS)  (face value of INR 10/- each) (not annualised)

 

 

 

a) Basic

b) Diluted

2.97

2.97

1.63

1.63

6.03

6.03

 

Note:

 

1. The auditors in their report have drawn attention to the uncertainties related to supply of gas, withholding of subsidies and claims by a vendor


2. Previous period's figures have been reclassified / regrouped wherever necessary.


3. The above unaudited results were reviewed by the Audit Committee and approved and adopted by the Board of Directors at its meeting held on 8th February 2018.


4. Effective 15th May 2014, domestic gas supply to the Company was arbitrarily stopped pursuant to an order passed by the Ministry of Petroleum and Natural Gas. The Company successfully challenged the same before the Hon'ble Delhi High Court, which by its orders dated 7th July 2015 and 19th October 2015 directed the Government of India (GOI) to restore the gas supply. A review petition was filed by the GOI, challenging the said order, which was has been rejected by the Court by an order dated 2nd February 2016. The GOI filed an affidavit before Delhi High Court stating that Inter Ministerial Committee (IMC) has decided to recommend supply of pooled gas to the Company, subject to approval of competent authority. The SLP filed by GOI against above orders of Delhi High Court has been disposed of by Hon'ble Supreme Court without granting any relief to the petitioner (GOI).


5. The Department of Fertilisers (DoF), Ministry of Chemicals and Fertilisers, had withheld subsidy, due to the Company in accordance with applicable Nutrient Based Subsidy (NBS) scheme of GOI, alleging undue gain arising to Company on account of supply of cheap domestic gas since challenged by the Company before the Hon'ble High Court of Bombay. Based on the directive of the Hon'ble Court, DoF agreed to release subsidy withheld except a sum of Rs. 310 Crores pending final decision, which has been released during the month of January-2018 against a Bank Guarantee of equal amount.


6. GAIL has claimed a sum of Rs. 357 crores in respect of supply of domestic natural gas for the period July 2006 to May 2014, alleging usage for manufacture of products other than Urea. As per two contracts entered into 2006 and 2010 between Company and GAIL, the purchase of gas was clearly intended, supplied and utilised for industrial applications. It has been in the full knowledge of the Department of Fertilisers, Government of India that the Company; as per the Industrial License, since its inception was never engaged in the manufacture of Urea and the dispute was referred to Arbitration. Accepting Company's stand, the Arbitration Tribunal has rejected the claim of GAIL. However, GAIL has preferred an appeal before Hon'ble Delhi High Court.


7. The listed Non-Convertible Debentures (NCDs) of the Company aggregating to Rs. 25,000 Lacs as on 31st December 2017 are secured by first pari-passu charge on the fixed assets of the Company, both present and future. The Company has maintained the requisite asset cover of 1.25 times of the gross value of assets located at Plot K1, MIDC Industrial Area, Taloja, which is sufficient to discharge the principal amount of the said NCDs in terms of Regulation 54 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The NCDs were redeemed on the due date of 18th January 2018.


8. The unaudited standalone and consolidated results of the Company (including its subsidiaries and associates) are prepared in accordance with applicable accounting standards i.e. Ind AS, as prescribed under section 133 of the Companies Act, 2013 read with relevant rules thereunder and in terms of Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015.


9. The Company opted to submit consolidated financial results commencing from the quarter ended 30 June 2017 which were subjected to limited review. The corresponding figures for the quarters and period in the previous year have not been reviewed and have been presented based on the information as compiled by the Management.


10. The statutory auditors of the Company have conducted a limited review of the above standalone and consolidated financial results of the Company for the quarter and nine months period ended 31st December 2017.

The emphasis of matter in the review opinion pertains to 2, 3 and 4 above.


11. The comparatives in the standalone financial results for the quarter and nine months period ended 31st December 2016 and the year ended 31s( March 2017 are not comparable with the amounts for the quarter and nine months period ended 31st December 2017 due to the effect of the scheme of arrangement of demerger of TAN and Fertilisers business.


12. Previous period's figures have been reclassified / regrouped wherever necessary.

 

 

INDEX OF CHARGE:

 

SNO

SRN

CHARGE ID

CHARGE HOLDER NAME

DATE OF CREATION

DATE OF MODIFICATION

DATE OF SATISFACTION

AMOUNT

ADDRESS

1

G84161082

100167527

SBICAP TRUSTEE COMPANY LIMITED

14/03/2018

22/03/2018

-

4310000000.0

202, MAKER TOWER ECUFFE PARADEMUMBAIMH400005IN

2

G58046970

100129285

BANK OF BARODA

27/09/2017

-

-

2000000000.0

SURAJ PLAZA-1, SAYAJI GANJ,VADODARA -390020. THROUGH ITS PUNE BRANCH.BARODAGJ390020IN

3

G58215088

100129403

EXPORT IMPORT BANK OF INDIA

27/09/2017

-

-

2310000000.0

21ST FLOOR, WORLD TRADE CENTRE ONE BUILDING,WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAIMUMBAIMH400005IN

4

G50946391

100117003

STATE BANK OF INDIA

24/07/2017

-

-

3105200000.0

INDUSTRIAL FINANCE BRANCH, PUNETARA CHAMBERS, MUMBAI - PUNE ROAD, WAKDEWADI, PUNEPUNEMH411003IN

5

G21012786

100059182

SBICAP TRUSTEE COMPANY LIMITED

19/10/2016

-

-

5500000000.0

202, MAKER TOWER E , CUFFEE PARADEMUMBAIMH400020IN

6

G44474815

10372880

SBICAP TRUSTEE COMPANY LIMITED

23/08/2012

27/04/2017

-

24350000000.0

202, MAKER TOWER 'E', CUFFE PARADEMUMBAIMH400005IN

7

G77370823

10426207

IDBI TRUSTEESHIP SERVICES LIMITED

09/04/2013

19/10/2016

15/02/2018

2500000000.0

ASIAN BUILDING, GROUND FLOOR,17,R. KAMANI MARG,BALLARD ESTATEMUMBAIMH400001IN

8

G47598867

10204739

BANK OF BARODA

17/02/2010

18/12/2012

04/07/2017

960000000.0

CORPORATE FINANCIAL SERVICE BRANCHMANTRI COURT, 1ST FLOOR, 39, RAMABAI AMBEDKAR ROADPUNEMH411001IN

9

G47573340

100092612

BANK OF BARODA.

27/03/2017

-

09/06/2017

4000000000.0

SURAJ PLAZA-1, SAYAJI GANJ,VADODARA -390020. THROUGH ITS PUNE BRANCH.BARODAGJ390020IN

10

G22130082

10245057

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

07/10/2010

-

04/11/2016

1150000000.0

PLOT NO. 139-140B, WESTERN EXPRESS HIGHWAYSAHAR ROAD JUNCTION, VILLE PARLE (EAST)MUMBAIMH400057IN

 

 

CONTINGENT LIABILITIES

 

PARTICULARS

31.03.2017

(INR In Million)

31.03.2016

(INR In Million)

 

 

 

Claims by Suppliers#

3985.716

357.336

Income Tax Demands

395.875

388.898

Excise/Service Tax/Custom Demands*

1244.920

1240.693

Sales Tax/ VAT Demands

481.894

396.422

Entry Tax

327.240

0.000

Bank Guarantees

1334.079

1140.717

Penalty Levied by Competition commission of India and contested by

Company

20.000

20.000

Letter of Credit issued in favour of suppliers@

1602.414

366.591

 

# Includes INR 345.722 Million relating to Discontinuing Operations as at 31st March, 2017

*Includes Customs duty amounting to INR 934.727 Million on duty free import of fertiliser during the period 2005-06 to 2009-10. Under the applicable policy of Government on subsidy, any customs duty needs to be reimbursed by Government.

@ Includes INR 510.840 Million relating to Discontinuing Operations as at 31st March, 2017

 

 

FIXED ASSETS:

 

TANGIBLE ASSETS

 

  • Free-hold Land
  • Lease-hold Land
  • Buildings
  • Plant and Equipment
  • Electric Installation
  • Office Equipments
  • Laboratory Equipments
  • Vehicles

 

INTANGIBLE ASSETS

 

  • Computer Software
  • Technical Know How/ Engineering Fees
  • License/ Franchise Fees

 

PRESS RELEASES

 

DEEPAK FERTILISERS COMPLETES DEMERGER OF CORE BUSINESSES

 

MUMBAI, MAY 5:  

 

Deepak Fertilisers and Petrochemicals Corporation has completed the process of demerging its core business — fertiliser and technical ammonium nitrate — into a wholly-owned subsidiary Smartchem Technologies.

The National Company Law Tribunal has recently approved the aforesaid restructuring and the company has filed the NCLT order with the Registrar of Companies with effect from May 1, said the company in a statement on Friday.

 

As part of the scheme, the industrial chemicals, the home lifestyle and retail arm Ishanya will continue to operate under DFPCL.

 

The scheme of arrangement does not involve any exchange or issue of additional shares as the transfer of the undertakings has been undertaken as a wholly-owned subsidiary of the listed entity.

 

The existing shareholders of DFPCL continue to remain unaffected with their economic interest as well as their status of shareholding, said Deepak Fertilisers.

 

The restructuring aims to enhance management focus for future growth, improving operational efficiency providing impetus to charting growth plan and generating incremental stakeholder value.

 

The envisaged restructuring is also well aligned with the changing economic and business environment of the country, it added.

 

Sailesh Mehta, Chairman and Managing Director, Deepak Fertilisers, said the move is aimed at future growth and providing ample room to each of the two businesses which has achieved scale and geographical spread.

 

While shareholders will remain unaffected by the scheme of arrangement, they will benefit from enhanced focus on bringing higher accountability to improve performance across all business verticals with building case for higher investments in respective business vertical, he said.

 

DEEPAK FERTILISERS TO INVEST INR 4500.000 MILLION TO INCREASE CAPACITY AT TALOJA PLANT

MUMBAI, SEPTEMBER 24:  

 

Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) plans to invest INR 4500.000 Million to expand the production capacity at its plant in Taloja, near Mumbai.

 

The funds will be used to enhance production of isopropyl alcohol (IPA) and diisopropyl ether (DIPE). The company is the sole manufacturer of IPA in India, a solvent primarily used by the pharma industry.

 

The Pune-based company will expand IPA capacity by 1 lakh tonnes per annum and DIPE production by 70,000 tonnes per annum. The project is expected to be completed in about 30 months. The company has signed a memorandum of understanding with HPCL for supply of key feedstock. A brown field project has synergies such as storage and utilities with the existing IPA plant. The production of high-purity DIPE commands a significant premium.

 

With a manufacturing capacity of 70,000 tonnes per annum, the company enjoys significant market leadership. The capacity utilisation of the IPA plant has been over 100 per cent.

 

IPA demand

 

The total annual demand for IPA in India was about 1.35 lakh tonnes last fiscal and is expected to touch 1.71 lakh tonnes by 2019-20. About 80 per cent of IPA demand is driven by the pharmaceutical sector. Other sectors, including inks, coating and derivatives, also use this chemical.

 

Sailesh Mehta, Chairman, DFPCL, said that with an established customer base and large supply-demand gap, the company is confident of marketing the additional one lakh tonnes to its existing and emerging customers.

One of the most widely used solvents and chemical intermediates, IPA’s demand in India has witnessed an annual growth rate of around 8-9 per cent for the past 5-7 years and is expected to grow at a similar rate in the future, it added.

 

Given the increasing demand and limited production capacity, about 48 per cent of the total demand of IPA is met through imports. To fulfil the market requirement and maintain its market leadership, Deepak Fertilisers also imports IPA.

 

The company is also exploring manufacturing segment-specific grades to cater to industries such as electronic and cosmetics.

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

 
Unit

INR

US Dollar

1

INR 67.96

UK Pound

1

INR 91.88

Euro

1

INR 80.28

 

 

INFORMATION DETAILS

 

Information Gathered by :

SHW

 

 

Analysis Done by :

PRY

 

 

Report Prepared by :

KVT

 

 

SCORE FACTORS

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.